Saturday, May 21

There’s something wrong here! X-Fab – The Forgotten Semiconductor Stock


by Jrg Lang, Euro on Sunday

In recent years, too little has been invested in production facilities, while at the same time demand has increased significantly. Digitization and e-mobility just don’t work without the small semiconductor products. The shares of the industry representatives developed correspondingly well. DAX value Infineon around the range of the multi-year high.

Measured against this, the share of X-Fab (ISIN: BE 097 431 042 8), a manufacturer of so-called analog and mixed-signal circuits, have some catching up potential. It even looks like the value of Brsians has been forgotten. This may also be due to the mixed structure. The company has its registered office in Belgium and the shares are listed on Euronext. Operationally, however, the headquarters are in Erfurt, since the core of the company is based on the former GDR semiconductor combine VEB Mikroelektronik.

The stock went public in April 2017. At that time it cost 8.30 euros. Today she is Fri EUR 9.55, the historic high was reached on January 19, 2018 at EUR 10.80. The analysis of the course, but also of the ErDevelopment of results brings surprises. If the stock had performed like Infineon’s shares, it would have had to be listed twice as high. The results also support this assessment. For the 2017 financial year, which brought historic highs, X-Fab reported an operating profit of 106.1 million euros. In the 2021 financial year that has just ended, it will probably be 160 million, in the new financial year analysts are calculating more than 190 million euros, which means: 50 to 80 percent price growth compared to the top 2018 would be justifiable. A comparison with Infineon’s earnings development also shows: X-Fab has developed so well in terms of earnings, only the price is lagging behind. At least not yet.

Our columnist Jrg Lang has been dealing with the topic of equities since 1988.

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